Slowing package delivery numbers highlights middling demand

UPS reported earnings earlier today and there are some read-throughs on the strength of the economy.

The company reported a 3.2% decline in average daily volumes in its domestic segment and a 5.8% drop in its international segment in the quarter. However the company said volumes “showed improvement through the quarter”.

The world’s largest parcel delivery firm is a barometer of economic activity. Overall revenues at $21.7 billion were below $21.9 billion expected and $22.9 billion a year ago.

The company remained optimistic on the second half of the year.

Shares are down 0.9% in the premarket.